It’s unlikely that programmatic TV will start out in the same manner as it did in the digital display ad world. That means no real-time bidding on open exchanges right off the bat. TV inventory is scarce and premium, so programmers and distributors are going to want a high level of control over transactions. As a result, we’re likely to see a mix of programmatic reservations, preferred deals, and private exchange deals. These will be coupled with premium TV and video marketplaces (such as Google Partner Select), which will emerge to help TV ad buyers and sellers transact.

Chief among programmers’ and broadcasters’ concerns about programmatic TV is that it will lower the value of their TV inventory. Let’s quash that thinking right now. Here’s why programmatic makes sense for TV programmers and broadcasters: